Property Token Holding Types

There are three distinct types of Property Token holding types in the Fabrica system, each with different implications for beneficial ownership:

1. EOA (Externally Owned Account) Holder

When a Property Token is held in an Externally Owned Account (EOA):

• This always indicates direct beneficial ownership
• The individual or entity controlling the EOA is the beneficiary
• The token holder has full rights to the property as defined in the Operating Agreement

2. Holding Smart Contract

When a Property Token is held in a Holding Smart Contract:

• These contracts act as abstract wallets directly controlled by individuals or legal entities
• Transfer to these contracts constitutes a change in beneficial ownership to the controlling entity or group of people
• Examples include multi-signature wallets, DAO treasury contracts, or other custody solutions

3. Functional Smart Contract Custody

When a Property Token is held in a Functional Smart Contract:

• This includes escrow, bridge, collateral, and fractionalization contracts
• Does not automatically imply change in beneficial ownership
• Ownership remains unchanged until token transfer to an EOA or holding smart contract
• Examples include NFTfi and MetaStreet loan contracts, where tokens are held as collateral

Understanding these custody types is crucial for properly tracking beneficial ownership and ensuring compliance with legal and regulatory requirements.